How "Not" to Lower your Credit Score Rating

Freedom · Joined: 15 Mar 2006 Posts: 1 Location: USA

Please be aware that if you are applying
with multiple lenders or a company that
passes your information along to multiple
lenders to compete for your mortgage or
loan - (everytime, one of these companies
accesses your credit report - your Fico
Score Rating drops, as much as 3 points
per Inquiry - We have seen Scores drop as
much as 100 points - due to this abuse -
which in turn will affect your Interest Rate)
.
A credit score lowered by excessive
inquiries may prevent a borrower from
qualifying for the lowest rate or for a
particular loan program. Because we do
not want to jeopardize your rating, we do not
collect social security information nor do we
run your credit without first speaking with
you and obtaining authorization.

Haplo · Joined: 20 Jan 2005 Posts: 2422 Location: Springfield, IL

If only it was standard that you had to actually talk to the person before pulling credit.

We are the same way. We actually require a signed authorization form that we keep on file for audit purposes that simply states you are applying for credit with us, and it's ok to pull a credit report.

jpm121 · Joined: 14 Feb 2006 Posts: 9

I'd read somewhere that the FICO flavor used for mortgages doesn't take into account multiple inquiries from mortgage lenders during the past 30 days -- myth?

chow · Posted: Thu Mar 16, 2006 10:30 am Post subject:

Myth. Just ask anyone who's pulled credit on someone who's shopped for a mortgage for a couple of weeks, and they are the LO at the end of the line.

jpm121 · Joined: 14 Feb 2006 Posts: 9

No way - I read that on the internet, it HAS to be true! :lol:

kgull85 · Joined: 27 Mar 2006 Posts: 1 Location: OK

I looked on TransUnions website and found this:

http://www.truecredit.com/help/learnCenter/welcome/inquiries.jsp?cb=TransUnion

"You can still shop around for a loan; multiple inquiries for the same purpose in a short amount of time are commonly grouped into one less harmful inquiry session."

Haplo · Joined: 20 Jan 2005 Posts: 2422 Location: Springfield, IL

Yes, 14 days is your time for hard pulls from mortgage credit and auto credit. So you can have multiple inquiries from mortgage companies in that period and it only counts as one. Same with auto loans. All others count as individual pulls though.

lil_oh_me · Joined: 04 Jan 2006 Posts: 35 Location: Grand Rapids, MI

Mark Fogarty wrote and editorial on this subject which is most informative.
Mr. Forgarty quotes Ginny Ferguson, former president of the California
Association of Mortgage Brokers, " credit inquiries count for just
10% of the score".

10% is not all that large unless, of course, the best program for a prospective borrower requires 660 and you pull a 659.

It has become more than a little confusing to prospective borrowers
not only because they do not deal with this every day but also because
of, in my humble opinion, marketing that deliberately confuses the issue.

For example, Experian, Tran Union and Equifax of gathered together and
created another scoring model which they have labeled Vantage. At
this writing there is not one lender out there using Vantage.* Advantage
Credit has broadcast a memo specific about the challanges of attempting
to emplement Vantage in automated underwriting, etc.

Credco has launched a new product called Anthem which compiles non-
traditional credit and arrives a score which is not accepted by FNMA
or FHLMC or any other lender at this time. The score is good for 30 days
which tells me if there is some plan to incorporate in use for FHA or
Emerging Markets you stand a good chance to miss the 30 days window.

Borrowers are able to go on line and pull their own credit only to find
that and different scoring model is used which not only adds to confusion but also adds fuel to the persception that the game is rigged.

It is the responsibility of the mortgage banker and mortgage broker to
guide and educate the prospective borrower through this maize.

*Allow me to correct myself as I know of one lender that pulls the Vantage
as a cross check and also as a method to resolve those instances with
FICO is 620, FICO II is 599 and Beacon is 550. Even so, this lender does
not base the loan on Vantage.

chow · Posted: Tue Mar 28, 2006 3:09 pm Post subject:

I just had an epiphany about Auntie GMae. :lol:

ahhhhhhhhhhhhhhhhhhhhhhhh, pure "sneaky" she is...... :wink:

You all just set back and think about the wide sweeping changes to FHA lending that has gone on in the last several months, and combine that with what the mortgage brokers are being told NOW.

I don't think you're gonna see the oldest woman (GMae)on the block- to do any thing but tell her siblings (Fannie and Freddie) to:

get the hell out of her way!

More than 3 years ago one of my investor friends told me he heard FHA was going to take charge, they had to. I kind of tripped into my job, which isn't really any thing special. (personally, I thought it would be a great place to be while I took a little brokering vacation-Lend my time to actually getting paid for educating people on FHA.)

It's kind of hard to beat a woman who's been around more than 70 years, and was the model for being the dream of homeownership. Look at what her younger siblings have faced in the accounting areas. .........

lil_oh_me · Joined: 04 Jan 2006 Posts: 35 Location: Grand Rapids, MI

hmmmm........

You have just validated a suspicion of mine, chow. This makes far
more sense than the expenditure of money and time for all three
to come up with this than merely CYA.

Affordable housing is a huge issue and FHA was developed to address
that issue. We have side stepped it with speculative real estate
investments. It is time to return home.

I hate to admit it yet Argent came out with a poster that knocked
my socks off. It is a picture of George Washington with the banner:
"Our forefathers did not come here to rent."

Haplo · Joined: 20 Jan 2005 Posts: 2422 Location: Springfield, IL

Quote: More than 3 years ago one of my investor friends told me he heard FHA was going to take charge, they had to. I

That's why I've been hammering into realtors and consumers that most of the business coming my way in the last 6 months has been FHA. Could be location though ;)

jlewis_media · Joined: 15 May 2006 Posts: 2

Tenx for the quick tip

huh? I removed your link. What quick tip?

csmith51 · Joined: 16 May 2006 Posts: 8 Location: Detroit area

I refinanced an investment property one time and had my score drop 100 points because I shopped around the wrong way. I know better now, pull it once and tell the lender what it is. Most lenders will give you a pre qual based on the info you give them. Eventually they will have to pull new credit, but once or twice isn't going to affect too much than having 10 ppl pull it when loan shopping. I have also heard you can supposedly contact the 3 credit reporting agencies and put a note stating why it was pulled many times. I don't know if that works or not. Has anybody tried it?

Haplo · Joined: 20 Jan 2005 Posts: 2422 Location: Springfield, IL

Sure, but the note doesn't affect your score.

BECCA9892003 · Joined: 20 Jan 2005 Posts: 400 Location: Altoona, PA

you can lose a max of 67 points for credit pulling

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